Do You Agree with Bait and Switch Marketing

[Mark]

A lot of agents are using what I call "Bait and Switch Marketing". Example is they mail a prospect a mailer that shows the best rates on a 10 year term with the best rate class. Just trying to get the client to call them. Most of the time, they either have small print on it or do tell them what the products really is. We all have seen the tv ads that show where a 40 male can get $500,000 for 15 a month, but you can't see the small print on these ads.

When you contact the agent or whomever did the ad, they try and switch products on you. Well you don't really want a 10 year term, now do you? Also that price was for the best rate class and you have a few health problems.

Just reminds me of a car lot ad. They show this really nice car with a great price and when you show up, they have already sold that car, but while you are here, why not look around.


Does this type of marketing really work? I mean I guess it does if they keep doing it.

What are your thoughts about this type of marketing?

 

[Norwayguy]

In a word do I agree with this tactic? No.....

 

[Mr. Blaze]

Does this type of marketing really work? I mean I guess it does if they keep doing it.

Yes it works due to the law of averages but how does one agency sift through the thousands of "china eggs" to find the few that qualify?

 

[moonlightandmargaritas]

While I don't condone "bait & switch" marketing, the people that normally respond to it get what they deserve.

 

[bill3173]

This tactic works, but not for long. Many people will not take the policy, once approved, or take it and immediately start shopping. I've got a guy right now, that didn't take the policy that was issued, from another agent, simply because of the bait and switch, and he's going to be paying about the same thing with me, due to health issues, which he disclosed to the other agent up front.

I've picked up more life clients than I can count, because of these types of selling strategies.

The other tactic that I see and get to replace frequently, is when someone is unwittingly placed in a non med term. They call and say Mrs. Jones recommended that I call you, she said that you got her a good price on her life insurance.

They tell me I'm 32 and built like stripper, and I'm paying $40/mo for $100k 15 year term. They are "surprised" to learn that they can reduce their premium, simply by getting an exam.

I will say this, the second tactic puts more money in the agent's pocket. They don't feel "lied to" and keep the policies longer. I just don't do it, because it's a rotten way to do bizness.

 

[arnguy]

IMO it is disgraceful to do business that way! Recently there was an full page ad in the local paper from a new car dealer that stated he was holding a gigantic blow out sale---only $99 for a brand new car. I forget which brand it was. Down at the very bottom of the ad in about the tiniest print imaginable it stated, "There will be at least on automobile on the lot at $99." Yeah! Frickin' thief.

 

[Justin Bilyj]

I thought that was illegal to bait and switch. Now if the advertisement shows under it, that the rate is based on sound health and no smoking, I dont see anything wrong with that, its like putting an "upto" next to a percentage off that I see many retail outlets use.
I think these days we almost expect there to be a catch, with everything!!

 

[ABC]

Before you use the bait and switch technique I recommend using this used car sales approach

 

[arnguy]

Even if it is not illegal, it is amoral. Using up to is not in the same league and neither is a disclaimer.

 

[Crabcake Johnny]

Our dealership once hiring this marketing company that promised to triple our lot traffic.

They did a few promo's - "drag or drive your trade - we'll give you $10,000." Another was mailing out keys - one started the car and you won. Yet another was a special "everyone is approved regardless of your credit" ad.

Yeah, our lot traffic increased, sales went down and they fired the marketing company.